Iranians Riot Over Petrol Rationing

This is sure to send Ahmadinejad's ratings through the roof.

From Iran-Va-Jahan (IRAVAJ) --

Angry Iranians have torched petrol stations in protests against the sudden imposition of fuel rationing in one of the world’s most oil rich nations.

In the capital, youths set a car and petrol pumps ablaze at a station in the residential Pounak area of northwestern Tehran, throwing stones and shouting angry slogans denouncing President Mahmoud Ahmadinejad, who came to power in an election based largely on his promises to improve the Islamic republic’s faltering economy.

Iran has to import more than 50 percent of its petrol needs because of its low refining capability, despite being the second biggest exporter in the Organization of Petroleum Exporting Countries (OPEC).

Under the new rationing system, owners of private cars can buy only 100 litres (26 gallons) per month at the subsidised price of 1,000 Rials per litre (£0.19) while taxi-owners can purchase 800 litres (211 gallons) a month. More...

President Ahmadinejad predecessor's knew better than rationing petrol. Some feel this may be the last straw for President Ahmadinejad and is the begining of the end.

Earlier this month, a group of 57 Iranian economists, including academics and former officials, wrote an open letter saying his government’s policies had hurt growth and stoked inflation while his foreign policy “had not been constructive”, drawing UN sanctions in a row with the West over Iran’s nuclear programme.

It echoed a missive issued by economists at the same time last year which also criticised Ahmadinejad’s government of economic mismanagement. Since then inflation has surged to more than 17 per cent, growth has continued to fall short of long-term planning targets and foreign firms have voiced increasing concern about investing in Opec’s number two producer.

Petrol consumption in Iran far outstrips the capacity of Iranian refineries, forcing Iran to spend billions of dollars on importing about 40 per cent of its petrol needs at international prices.

Last year the Iranian parliament slotted $2.5 billion for petrol imports but spent $5 billion on imports to sell at subsidised prices. Much is smuggled to Iran’s neighbours
where petrol prices are higher.

Demand for petrol in Iran is growing by 11 per cent a year, compounded by a huge boom in car sales. Iran’s 8.5 million cars ..... consume around the same amount of petrol as the 35 million cars on British roads. More...

We should see if they want to buy some corn?